2006 (2) TMI 140

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....hone services. In terms of a licence awarded in its favour for operation of the said services in the States of Uttar Pradesh, Bihar, Orissa and West Bengal, the assessee was required to provide finance and performance bank guarantees to the Department of Telecommunications. The assessee appears to have arranged these bank guarantees from IFCL, NICL and Lord Krishna Bank. These institutions had in ....

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....efore be deemed to be parking of surplus funds so as to render any income earned on the same exigible to tax as income from other sources. Reliance in support of that view was placed upon two decisions of the Supreme Court in CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 and CIT v. Karnal Cooperative Sugar Mills Ltd. [2000] 243 ITR 2. A further appeal by the Revenue filed before the Tribunal havi....